As Shipments Decline, UPS Cuts 20K Jobs

The United Parcel Service is preparing for an uncertain future. The company announced Tuesday that it will cut 20,000 positions and close 73 leased or owned buildings this year to save costs as President Trump's tariffs slow trade. This comes after UPS cut 12,000 jobs and closed 11 buildings last year, per the Wall Street Journal. "The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier," CEO Carol Tome said in a statement, per Reuters.

UPS faces a sharp decline in volumes owing to tariffs and the company's decision to limit its business with Amazon, which accounted for about $1.07 billion or nearly 12% of overall revenue last year. In January, UPS said it planned to phase out more than half of its business with Amazon over 18 months. The company expects to save $3.5 billion with its latest moves. Shares rose nearly 2% before Tuesday's opening bell. UPS also announced first-quarter revenues of $21.5 billion, a 0.7% decrease from a year ago but higher than Wall Street expectations of $21.05 billion.